Question #62
Reading: Reading 25 The Term Structure and Interest Rate Dynamics
PDF File: Reading 25 The Term Structure and Interest Rate Dynamics.pdf
Page: 26
Status: Unattempted
Correct Answer: A
Question
The least important factor explaining the changes in the shape of the yield curve is:
Answer Choices:
A. Level
B. Steepness
C. Curvature
Explanation
Changes in the shape of yield curve is explained by (in order of importance): level,
steepness and curvature.